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Traders work on the floor of the New York Stock exchange during morning trading on May 17, 2024.
Michael M. Santiago | Getty Images
The Nasdaq Composite closed at a record level on Tuesday, as Nvidia‘s ascent lifted the technology-heavy index in an otherwise lackluster trading day.
The Nasdaq advanced 0.59% to 17,019.88, eclipsing the 17,000 level for the first time ever. The index was buoyed by Nvidia‘s jump of more than 7%.
The S&P 500 inched up just 0.02% to 5,306.04. The Dow Jones Industrial Average slipped 0.55%, or 216.73 points, to end at 38,852.86.
While Nvidia’s rally disguised troubles in the broader market, the blue-chip Dow was weighed down by a drop in Merck and other health names. Meanwhile, more than 350 stocks in the broad S&P 500 were negative in the session. The index’s health care, industrials and financials sectors all finished more than 1% in the red.
A government auction of Treasurys that was met with weak demand sent the rate on the 10-year note back above the key 4.5% level. Stocks have struggled recently when the benchmark rate tops that mark. Stocks briefly fell to their session lows as yields rose, with the Dow falling more than 300 points before recovering.
Also on Tuesday, Minneapolis Federal Reserve President Neel Kashkari said he wants to see “many more months” of data pointing to easing inflation before cutting rates. He also said he would not rule out further rate hikes if price pressures tick up again.
Tuesday’s moves come near the end of a strong month, with all three major indexes posting fresh record levels in May. Softer inflation data earlier this month and better-than-expected quarterly earnings reports lifted sentiment, with the former suggesting interest rate cuts could come earlier than investors had anticipated. In May, the Dow has added 2.7%, while the S&P 500 and Nasdaq have climbed more than 5% and 8%, respectively.
“We could see a little bit of choppiness this week” coming off the long weekend, said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. “But overall, I think the market is bullish.”
Looking ahead, investors are gearing up for the personal income and expenditures report, which includes the PCE inflation reading, for April out Friday.
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